The Hidden Costs of Letting Agents vs. the Guaranteed Income of Rent-to-Rent

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Are You Really Getting What You Pay For?

If you’re a landlord using a letting agent, you’re likely paying 10–15% of your monthly rent, plus extra charges for renewals, maintenance calls, inspections, and more.

But here’s the question every landlord should ask in 2025:
“What am I actually getting in return—and is there a better option?”

More and more landlords are discovering the rent-to-rent model as an alternative to traditional agents. With guaranteed income, zero tenant interaction, and no hidden fees, rent-to-rent is reshaping how landlords earn from their properties.


The True Cost of Letting Agents in 2025

Letting agents promise peace of mind, but often deliver surprise fees and mixed results. Let’s break down what you’re really paying for:

1. Commission Fees (10–15%)

Your agent typically charges a percentage of your monthly rent. On a £1,500/month property, that’s £150–£225/month lost—every single month.

2. Renewal Fees

Each time a tenant renews, many agents charge an extra £100–£300, just for updating paperwork.

3. Maintenance Mark-Ups

Need a plumber? That £80 call-out might be bumped up to £120+ once the agent adds their cut.

4. Poor Void Management

Agents don’t always hustle to fill empty properties. Void periods are your loss, not theirs.

5. Communication Headaches

Slow response times, unreturned calls, or poor tenant screening can cost you in reputation, rent arrears, and long-term value.


How Rent-to-Rent Compares (and Wins)

With rent-to-rent, you don’t just save on fees—you gain guaranteed stability.

Here’s how rent-to-rent stacks up:

Feature Letting Agent Rent-to-Rent
Monthly income Variable Guaranteed
Fees 10–15% + extras None
Void periods Landlord’s loss Still paid
Maintenance Often marked up Included or agreed
Property care Reactive Proactive
Tenant issues Handled by agent (sometimes poorly) Fully managed by us
Risk level Moderate Low to none

Why Landlords Are Switching in 2025

1. Predictable Income = Peace of Mind

Rent-to-rent guarantees you a fixed monthly payment, even during voids or tenant disputes. This makes it easier to plan mortgage payments, tax obligations, or even retirement income.

2. No More Hidden Charges

Everything is agreed up front. There are no agency fees, renewal charges, or unexpected costs.

3. Better Tenant Management

Because rent-to-rent companies profit by keeping the property full and well-maintained, we’re motivated to provide excellent tenant care—far more than an overworked high-street agent.

4. Stress-Free Ownership

You don’t get dragged into the day-to-day. No calls. No late rent. No emails about broken boilers. We handle it all.


Common Concerns (And Why They’re Misleading)

❌ “Rent-to-rent sounds too good to be true.”

✅ It’s simply a modern lease structure. We take on risk so you don’t have to. It works because we run the property like a business.

❌ “I’m worried about losing control.”

✅ You remain the legal owner. Contracts are flexible, with break clauses and protections in place.

❌ “Letting agents are safer.”

✅ Most rent-to-rent companies (like ours) offer longer tenancies, better care, and higher overall returns—without the stress.


Real-Life Example: Letting Agent vs. Rent-to-Rent

Same Property, Two Paths

🔹 Scenario 1 – Letting Agent

  • Rent: £1,500/month

  • Agent fee (12%): £180

  • Annual renewals + repairs: ~£600

  • 1-month void: -£1,500

  • Annual income: ~£15,000

🔹 Scenario 2 – Rent-to-Rent

  • Guaranteed rent: £1,400/month

  • No fees, no voids

  • Annual income: £16,800

  • Plus: No stress, no management time

Net gain: peace of mind + £1,800 extra per year


Is It Time to Rethink Your Letting Strategy?

Rent-to-rent isn’t just about saving money. It’s about:

  • Getting your time back

  • Avoiding risk

  • Turning property into a true passive income stream

For landlords tired of paying more while getting less, rent-to-rent is a powerful alternative that provides consistent returns with none of the management headaches.


Conclusion: Why Pay for Uncertainty?

Traditional letting agents have their place, but they don’t always offer the value landlords expect—especially in today’s market. If you’re ready to ditch fees, guarantee your income, and remove the hassle, rent-to-rent might be your perfect fit.

Contact us today to see what we can offer on your property—no obligations, just clear, guaranteed solutions.

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